Achiko reports an EBITDA loss of USD $1.9 million, compared to an EBITDA loss of USD $4.6 million for the six months ending June 30, 2021.
Focal points of the first half year were completion of a major new sales contract in Indonesia, obtaining a CE Mark for AptameX™ and streamlining the organization ahead of launching and scaling production for sales to Indonesia and other countries.
AptameX™, Achiko’s proprietary low-cost, saliva-based Covid-19 diagnostic, has shown competitive product performance to other Covid-19 testing solutions with calibration testing confirming its ability to deliver a >97% sensitive and >97% specific rapid test at a wider range of viral loads than most other rapid tests.
After the balance sheet date, raised CHF 1.25 million in financing with sophisticated investors.
ZURICH, Switzerland, Oct. 03, 2022 (GLOBE NEWSWIRE) -- Ad hoc announcement pursuant to Art. 53 LR – Achiko AG (SIX: ACHI; OTCQB: ACHKF; ISIN CH0522213468) (“Achiko”, the “Company”) is pleased to announce its financial results for the period of six months to June 30, 2022, and its progress since then which can be found at https://www.achiko.com/financials.
In the first half of 2022, Achiko AG has confirmed that calibration testing of its affordable non-invasive Covid-19 saliva-based rapid test technology, AptameX™, indicated the system’s ability to deliver a >97% sensitive and >97% specific rapid test at a wider range of viral loads than most other rapid tests.
“The ability to offer healthcare professionals a practical alternative to PCR tests and less accurate antigen based rapid tests has been a major driver for Achiko’s research and clinical development teams to produce the world’s first scale application using DNA aptamers in a commercial diagnostic setting,” said Mr. Steven Goh, CEO of Achiko. “The use of differentiated chemistry to develop a range of non-invasive, highly accurate, and cost-effective rapid tests with Achiko’s AptameX™ technology, positions the Company at the leading edge of diagnostic development moving forward.”
Despite another challenging period for the Company, it has made significant progress with its initial commercial application of its AptameX™ technology and expects to be generating significant revenue from AptameX™ in Indonesia in the final quarter of 2022.
Commercialization in Indonesia and Beyond
A key focus of operations during the reporting period was to progress the Company’s efforts to successfully launch a scalable test product in Indonesia. As part of this, the Company completed its pre-sales validation process in Indonesia with first generation test kits and identified a range of improvements that are being incorporated into its second-generation product. Key materials are now being produced in Taiwan and scale plastics and assembly being undertaken in Indonesia.
In April, the Company signed a major marketing and sales agreement with Pengurus Wilayah Nahdlatul Ulama DKI Jakarta (PWNU), the Jakarta District of Nahdlatul Ulama (NU), the largest Islamic organization in the world, located primarily in Indonesia. The agreement provides for the supply and delivery of aptamer-based diagnostics, first to its Jakarta branch of over 4 million members, and on success, to the larger membership of over 90 million registered members. At the same time, the Company signed an updated agreement with PT Indofarma TbK (Indofarma) to use its sister digital passporting service Teman SehatTM (“Health Buddy”) as a telehealth platform for its diagnostic services. Indofarma is one of Indonesia’s oldest pharmaceutical companies (part owned by the Government). It supplies over 13,000 pharmacies, 4,000 hospitals, and 9,000 health facilities. It also conducts testing in over one hundred airports and is a national manufacturer of medical devices and the National Contract Research Organization.
In May, the Company successfully registered AptameX™ under the European Union Medical Device Research and In Vitro Diagnostic Regulation and obtained a CE Mark that grants it access to 27 countries in the European Union for its Covid-19 AptameX™ test and system.
Achiko concluded the first half of 2022 with an operating loss of USD $2.4 million in comparison to a loss of USD $4.6 million in the first half of 2021. The Company reduced its expense base in Switzerland and focused its development efforts through one primary research and development team.
The ability to manage costs with a reduced footprint has been important during a challenging period for the Company. Delays with completing the full year accounts and subsequent audit took up a considerable amount of management time and attention and contributed to the Company’s delay to raise sufficient finance in time to launch and scale production in Indonesia as planned before the end of the period.
Post balance date, the Company has completed CHF 1.25 million in financing by a number of sophisticated investors. Funds are being applied to launching and scaling commercialization efforts in Indonesia and beyond and bringing the Company towards good standing.
Steven Goh commented: “We are grateful to our shareholders and our partners for their help and support and look forward to a brighter finish to 2022 and beyond.”
AptameX™: Product Development, Sales, and Market Outlook
“Achiko’s core objective is to bring access to better, more affordable, and accurate diagnostics,” Goh added. “With its AptameX™ technology, the Company is well placed to take advantage of major healthcare trends including delivering increasingly accurate diagnosis at Point of Care by non-invasive means and using technology to deliver rapid results in real time.” AptameX™ offers public health assurance through early detection by regularly using a telehealth platform for diagnostics equipped with the latest technological diagnostic tests that are comfortable, accurate and affordable.
Despite delays in production to meet forecast demand, the outlook for AptameX™ in Indonesia remains encouraging and the Company expects to be producing and delivering over one million tests per month in the final quarter of this calendar year. Samples are also being produced for use in other Asian countries, Europe, and the Middle East.
During the Reporting Period, the Company welcomed Mr. Derek Brandt as a Member of its Advisory Board and after balance date farewelled Ms. Carol Aebi. The Company is moving to strengthen its corporate leadership in Finance and other important functions with a series of key executive appointments. Further details shall be released in advance of and as part of the upcoming AGM that will now be held in late October / early November at a date to be announced.
ABOUT ACHIKO AG
Achiko AG (SIX: ACHI.SW; OTCQB: ACHKF; www.achiko.com) is developing disruptive diagnostic solutions that put people first. The Company’s lead product, AptameX™, is a rapid, reliable Covid-19 test with a companion app, Teman Sehat™, offering a user-friendly digital health passport. AptameX™ and Teman Sehat™ were launched in Indonesia in mid-2021 and AptameX™ received the CE Mark in the European Union in May 2022.
The AptameX™ DNA aptamer tests can be rapidly chemically synthesized, are cost-effective, easily scalable and have broad potential across multiple disease areas. Achiko aims to deliver fast, accurate and affordable diagnostic testing for a range of diseases in the rapidly evolving healthcare diagnostics field.
Headquartered in Zurich, Achiko has offices in Jakarta, and staff around the world.
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This communication expressly or implicitly contains certain forward-looking statements concerning Achiko AG and its business. Such statements involve certain known and unknown risks, uncertainties, and other factors, which could cause the actual results, financial condition, performance, or achievements of Achiko AG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Achiko AG is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.